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Difference between trading and traditional business

Hi there!

How do you think, what is the difference between trading and traditional business, say, entrepreneurship?
Some people claim that there are no differencies between these two things and say – «you should create a business plan» e t.c. While every commercial venture should be previously planned, I would also claim that trading itself differs significantly from other entrepreneurial spheres.

First, and foremost, trading also requires startup capital like any other venture. And yes, this capital can be lost. There is a famous joke, that says: «No, your capital is not lost, it just moved to another pocket» 

But let’s think of a trading as a venture. I think that probably the difference that is not so easy to spot is that traditional business pushes entrepreneur for more activity, and trading would require less activity from a trader. It’s ok to move toward some goal for traditional entrepreneur, to be pulled by this goal and generate more activity. But when it comes to trading, we find that trader should not be pulled to profits but rather he/she should be pushed away from losses.

It’s not a secret that average results of traders are frustrating. Achieving «normal» results in trading means that you will suffer financially. Below I provide you a statistical distribution according to official NFA information:

This picture shows that successful traders belong to pretty small universe. In doesn’t mean that 99.99% lose money in the market, but we are talking about steady results.

So, to succeed in this business, trader should do the opposite relative to traditional entrepreneur – he should generate less activity and chances are greater that in this case trader will have chances to survive.

Yes many of us are having problems with psychology and often make mistakes doing trading. I have learned that before entering the real market, we should be sure enough that we are ready doing real profits in trades with the knowledge and experience we have acquire from doing demo trades.

Yes this is not only about your brother or not only about me, almost we all are facing problem with our trading psychology. But only experience is the thing which can reduce it in trading. According to me forex trading is not a bed of roses we have to be sincere with what we are doing in this market. It is good for us to be wise in the dealings of the market.

Yes this is not only about your brother or not only about me, almost we all are facing problem with our trading psychology. But only experience is the thing which can reduce it in trading. According to me forex trading is not a bed of roses we have to be sincere with what we are doing in this market. It is good for us to be wise in the dealings of the market.

When we have habits that are not good for trading we have to work very hard to fix them. So to learn everything I think I am in the forum. Actually we are learning a lot from here as well as earning bonus. forum is a open platform to share opinioun of the people all over the world and share experiences.

Some people think since forex is 24hours market they can spend the whole day trading or making analysis, the difference between the traditional business and trading are not much, you just have to make some plans on how to trade so that you don't end up losing everything at the end of the day.

[lang=de]Actually traditional business has huge limitations and it is not large and big like forex. Forex market is biggest money market. I did not find any business like this. Traditional business has huge limitations but forex does not. Forex can make a person rich and wealthy so quickly but doing traditional business it is really difficult.[/lang]

actually the way we treat forex is little common to offline business provided we understand what we are doing as a trader,forex is a business that has to do with better understanding with the market and like any other business we might be doing offline if we lack better understanding with the market to make money when we are doing the business might be hard.

I find that joke funny but insightful, there is a great different between trading and traditional business even if the business is involving online, the difference is that forex is an international market while traditional business have to function from one location to another and again forex traders can share their trading strategy like what we are doing now but the traditional business can share their business secret easily.

For entering in the forex market, each foreign currency exchange trader won’t need to face any difficult phase like any traditional business. Such as: each normal business usually requires bigger or at least an amount of capital to start the move. But when we are talking about forex we can’t actually deny the fact that forex will be accessible with smaller amount also as forex brokers are now providing micro trading account as well.